MANHASSET, N.Y. Weak demand, falling prices, and lingering inventory issues contributed to less-than-stellar sales and earnings results for Cirrus Logic Inc. and Silicon Storage Technology (SST) Inc.
Audio IC supplier Cirrus Logic (Austin, Tx.) posted net earnings of $2.5 million, or 3 cents per share on sales of $44.0 million in its third 2005 fiscal quarter ended December, including charges. A year ago, Cirrus earned $39.5 million, or 47 cents per share on sales of $55.3 million.
In December, Cirrus lowered its revenue guidance and announced restructuring actions, including reducing workforce and revamping its organizational structure. The company's revised guidance called for revenue to top off at $46 million to $47 million; however, Cirrus said Wednesday (Jan. 26) it would not record $2.2 million of revenue in its December quarter results.
Cirrus expects sales for the fourth 2005 fiscal quarter to range from $40 million to $42 million, reflecting uncertain consumer demand for audio converter ICs as well as inventory reduction efforts.
Flash memory supplier SST (Sunnyvale, Calif.) posted a net loss of $26.9 million, or 28 cents per share on sales of $104.1 million for the fourth quarter of 2004, compared to net earnings of $9.1 million, or 9 cents per share on sales of $95.2 million a year ago. Results were in line with the revised guidance SST issued in December.
As with other memory suppliers, SST was adversely affected by weak memory pricing and recorded a $20.9 million inventory charge to reflect selling price declines.
SST expects revenue for the first quarter of 2005 to range from $95 million to $105 million, with a 9 to 13 cent loss per share as shipments will decline from the fourth quarter and average selling prices continue to fall.